Updated April 2026 · Florida Plan Finder · Licensed Florida Health Insurance Producer

COBRA Notification Requirements: A Florida Employer's Compliance Guide

COBRA—the Consolidated Omnibus Budget Reconciliation Act—requires employers with 20 or more employees to offer continued health coverage after qualifying events like termination, reduced hours, divorce, or a dependent aging off a parent's plan. Missing a deadline or sending the wrong notice triggers significant per-day penalties. This guide walks through every required notice, every deadline, and the state mini-COBRA rules that cover smaller Florida employers.

Who Must Comply with Federal COBRA

Federal COBRA applies to private employers who:

• Employed 20 or more employees on at least 50 percent of typical business days in the prior calendar year, AND
• Offer a group health plan (medical, dental, vision, FSA, or HRA in some cases)

The "20 employee" count includes full-time and part-time employees. Part-time employees count as a fraction: an employee who works 3 of 5 days counts as 0.6 of an employee for COBRA counting purposes.

Church plans and federal government plans are exempt. State and local government plans must comply with the Public Health Service Act's similar provisions.

Florida Mini-COBRA for Smaller Employers

Florida Statutes §627.6692 provides continuation coverage rights to employees of employers with fewer than 20 employees. Key differences from federal COBRA:

• Coverage continues for up to 18 months (same as federal)
• The qualifying events are similar: termination, reduced hours, divorce, death of employee
• The employer must notify the insurer of the qualifying event; the insurer then notifies the qualified beneficiary
• Premiums may be up to 150 percent of the group rate (vs. 102 percent under federal COBRA)

If you employ fewer than 20 people, you still have continuation obligations under state law—just administered differently through your insurer rather than your HR department.

Required Notices and Deadlines (Federal COBRA)

1. General Notice (Initial Notice)

Must be sent to new employees (and covered spouses) within 90 days of coverage start date. This notice explains COBRA rights generally. Failure to send: $110/day per qualified beneficiary penalty from DOL.

2. Employer's Qualifying Event Notice to Plan Administrator

When you learn of a qualifying event, you must notify your plan administrator (usually the insurance carrier) within 30 days.

3. Election Notice (COBRA Offer)

The plan administrator has 14 days after receiving the qualifying event notice to send the election notice to qualified beneficiaries. Combined: beneficiaries must receive the election notice within 44 days of the qualifying event.

4. Election Period

Qualified beneficiaries have 60 days from the election notice (or coverage loss date, whichever is later) to elect COBRA.

5. Premium Payment

First premium is due 45 days after COBRA election. Subsequent premiums are due monthly with a 30-day grace period.

6. Notice of Unavailability

If COBRA is not available (e.g., the plan terminated), you must send a notice of unavailability within 14 days of the qualifying event notice.

Qualifying Events and Coverage Duration

COBRA coverage may be terminated early if the beneficiary becomes covered under another group health plan with no exclusion for pre-existing conditions, enrolls in Medicare, or fails to pay premiums.

Penalties for Non-Compliance

COBRA violations are costly:

• DOL excise tax: $110 per day per qualified beneficiary for failure to provide timely notices (up to $500,000 per year or 10% of prior-year healthcare costs for the employer)
• IRS excise tax: $100–$200 per day per qualified beneficiary for plan-level COBRA failures
• Individual lawsuits: Plan participants may sue under ERISA §502(a) for failure to provide notices; courts may award attorney fees

Most violations are administrative (wrong form, missed deadline) and caught during DOL audits. Using a third-party COBRA administrator ($5–$15/month per covered employee) is the lowest-cost way to ensure every notice goes out on time.

Frequently Asked Questions